The Implication for NESO of 24/7 Carbon Free Energy Trading

Project summary

24/7 (hourly) matching of Carbon Free Energy (CFE), is a significant change from the status quo (annual matching), enabling consumers to meaningfully reduce GHG emissions in real time. The aim of this project is to better understand circumstances in which dispatch patterns could be impacted by 24/7 CFE trading, whether these changes will be beneficial for system operation and to identify the actions which NESO can take (directly or through influencing the design of the scheme) to ensure that the beneficial impacts are maximized and the non-beneficial impacts are minimised. 

Name Status Project reference number Start date Proposed End date
The Implication for NESO of 24/7 Carbon Free Energy Trading Live NIA2_NGESO069 May 2024 Aug 2025

 

Strategy theme Funding mechanism Technology Expenditure
Net zero and the energy system transition NIA_RIIO-2
  • Carbon Emission Reduction Technologies
  • Gas Transmission Networks
 £620,000
Summary

24/7 (hourly) matching of Carbon Free Energy (CFE), is a significant change from the status quo (annual matching), enabling consumers to meaningfully reduce GHG emissions in real time. The aim of this project is to better understand circumstances in which dispatch patterns could be impacted by 24/7 CFE trading, whether these changes will be beneficial for system operation and to identify the actions which NESO can take (directly or through influencing the design of the scheme) to ensure that the beneficial impacts are maximized and the non-beneficial impacts are minimised. 

Benefits

NESO needs to be aware of the circumstances in which dispatch patterns will change due to 24/7 CFE trading and whether these changes will be beneficial or not for system operation. Ahead of potential implementation of such a trading scheme, NESO needs insight on the action to take (directly or through influencing the design of the scheme) to ensure optimal outcomes for system operation and consumers: this project will provide such insights.The ESO will also gain insights into the potential implications of market reforms for 24/7 CFE trading, being discussed under the Government’s Review of Electricity Market Arrangements (REMA) i.e. national, zonal or nodal pricing; and/or centralised dispatch and scheduling.

ENA smarter networks portal